LETTERS TO DEPUTY DIRECTOR INSURANCE

Ref N0 NFOESM/GIC/104/2016                     Dated 22/08/2016

Mrs.Bhumika Varma,

Deputy Director (Insurance)

Ministry of Finance,

Department of Financial services.

Dear Sir,

Sub: Request  to issue instruction for the calculation of the pension of retired Ex-servicemen of your company at 50% of LPD instead of Pro-rata as per para 54B &  of GIC pension rule 1995 which takes in to account the changes in the CCS pension rule1972 from time to time.

We wish to invite your kind attention to the genuine grievance of our retired Ex-servicemen re-employed in General insurance Company and its 4 subsidiaries. As you were aware Ex-servicemen have only limited period of service with the company since it is their second career & they retire on superannuation with less than 33 years of service When GIC pension was introduced in 1995, they had opted to join the scheme by the attraction of para54B of the scheme forgoing huge amount on their account on account of CPF.

The Scheme was approved by ministry of finance, department of economic affairs & notified in the official gazette of India to be enforced in GIC companies & the scheme was named as GIC pension rule 1995. It was a Govt sponsored scheme & GIC & its 4 subsidiaries being the Instrumentality of the State directly coming under the ministry of Finance , the CCS Pension rules amended up to 1995 were used as the basic document to draft the GIC pension rule 1995.This is evident from the Para 54B & 55 of GIC pension rule 1995.

In 1995 CCS pension rules contained provision which curtailed the pension on prorate basis if the qualifying service of the employee was

less than 33 years & consequently same provision was incorporated in GIC pension rules at that time when it was started in 1995.But Para 54B of the GIC pension rule clearly states that any subsequent amendment in CCS pension rule 1972 from time to time has to be taken in to account by GIC pension scheme 1995.

The CCS pension rules are deemed to have been amended with the implementation of 6th central pay commission w.e.f. 01/01/2006  in which the linkage of full pension with 33 years is removed & fixed 10 years on superannuation  20 years service in resignation/ voluntary retirement  for full of 50% of the last drawn pay  as per OM 38/37/08-P&PW (A) Dated 02/09/2008. Para 14 of the above OM clearly states that CCS pension rule is amended accordingly.

. We request you the full fill the promise made by you vide Para 54B of the GIC pension scheme to our retired soldiers who were re-employed in you esteemed organization. They were attracted by the said Para to join the scheme by surrendering large amount to their credit in CPF .If you do not full this promise made to them at the time of joining the GIC pension scheme, it will turn to be a violation of agreement which is to be settled by courts

We would also like to mention that the supreme court has also ruled in R.P.(C) NO. 2565/2015 IN SLP(C) NO. 6567/2015 In Union of India Vs M O. INASU that pension should not be Less than 50% of the LPD if qualifying service is 20 years even in pre-2006 case.

Hence we would kindly request you to instruct the authorities to re calculate his pension to 50 % of his Last pay drawn  with effect from 01/01/2006 as per provision contained in Para 54B of GIC pension rule 1995 by applying CCS pension rules 1972 amended vide OM 38/37/08-P&PW (A) Dated 02/09/2008. 

Sir, ex-servicemen re-employed in our industry is not demanding any undue benefit and this is their legitimate demand which is well with in the  framed rules applicable to this GIPSA companies as per the Para 54B of GIC pension scheme 1995, and we need only to incorporate the same. This will help all those ex-servicemen retired with less than 33 years as adhered by Ministry of finance Govt of India.

We are enclosing all relevant documents for your reference and doing the needful.

Thanking you,

MBC MENON

CHAIRMAN

NATIONAL FEDERATION OF EX-SERVICEMEN

Encl:-

1) Copy of  GIC pension rules 1975

2) Copy of OM 38/37/08-P&PW (A) Dated 02/09/2008